In international shipping, understanding detention and demurrage charges is essential for cost control and supply chain efficiency. These fees can add up quickly if cargo isn’t moved within the allotted time, leading to unexpected expenses.

What is Demurrage?

Demurrage charges apply when import containers remain at the port beyond the free time granted by the shipping line. Once a container is discharged, ports allow a specific number of free days for pickup. If the consignee fails to move the cargo within this period, the shipping line imposes daily demurrage fees. These charges incentivize timely clearance and ensure port efficiency.

What is Detention?

Detention fees occur when a shipper or consignee holds onto a container beyond the free time allowed outside the port. Unlike demurrage, which applies while cargo is within the terminal, detention fees start accumulating when the container leaves the port but is not returned within the agreed timeframe. This can happen due to delays in unloading, customs issues, or trucking shortages.

How to Avoid Demurrage and Detention Fees

Minimizing detention and demurrage charges requires proactive planning and coordination. Penske helps you avoid unnecessary fees by helping you:

  • Understand Free Time Limits: Each shipping line and port has different free time allowances. Stay informed to plan accordingly.
  • Pre-arrange Inland Transportation: Ensure trucks are scheduled in advance to move containers efficiently.
  • Streamline Customs Clearance: Delays in documentation and customs processing can cause unnecessary storage time. Work with an experienced freight forwarder to expedite the process.
  • Optimize Warehouse Operations: Have a plan in place to unload and return empty containers promptly.

Learn more about Penske’s Demurrage and Detention Dispute Resolution process, then get in touch with us today to discuss expert freight forwarding solutions.

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